Should the support at 1.11 fail, then the next level down at 1.10 is also quite likely to provide support as it has done previously on several occasions. The 1.11 and 1.12 levels remain key and the EURUSD has been bouncing off both these levels for several months.
On Tuesday last week we covered XAUUSD which had a very volatile week moving to its highest level in nearly seven years above $1610, as it exploded through the key $1500 level. It has traded back and forth a little in the last week as some relief selling is to be expected as people take some profits. Prior to the surge higher, gold had moved very little trading right around the $1475 level, as it remained in a narrow range trading roughly between $1460 and $1480, where it has spent the best part of the last few weeks. It had spent this time consolidating after dropping sharply back through the key $1500 level to a three month low below $1450. The $1500 level will be widely expected to offer some support should gold decline further.
We also covered the US30 index which spent the remainder of the week continuing to edge higher towards new all time highs again. In the last week or so the US30 index has consolidated a little around 28500 after easing from all time highs before another push higher. The last few weeks have seen the index move strongly higher to all time highs again after moving through the key 28000 level. Should the index decline from its current levels, the 28000 level is likely to play a role and provide support.
UK Oil has been on a rollercoaster ride in the last week and finished last week trading near a three week low around $65. During the last week UK Oil has pushed through the key $68 level to its highest level in seven months before being sold off and enjoying support at the $68 level before its surge higher to above $71 before its strong fall back down below $68 to a three week low. After strong falls like this, it is unusual to see all of that lost ground regained in a short period of time so the $68 level may resume its role and offer some resistance should UK Oil rally from these levels. The $63 level is also significant and has played a role several times in the last few months.
To finish out the week we covered the GBPUSD which continued to ease away from a two week high above 1.32 back down to the key support level of 1.30 where it is currently enjoying more support. It has shown some more volatility of late when it surged higher to its highest level in more than 18 months above 1.35 before falling sharply back down to the current key level of 1.30 which has been significant for the last three months. The 1.30 level again remains key and will be closely watched to see if the support holds up or the sterling returns back below and meets resistance at that level again.
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